10 USC § 8724 - Protection of oil reserves; contracts for conservation

---
identifier: "/us/usc/t10/s8724"
source: "usc"
legal_status: "official_legal_evidence"
title: "10 USC § 8724 - Protection of oil reserves; contracts for conservation"
title_number: 10
title_name: "ARMED FORCES"
section_number: "8724"
section_name: "Protection of oil reserves; contracts for conservation"
chapter_number: 869
chapter_name: "NAVAL PETROLEUM RESERVES"
part_number: "IV"
part_name: "GENERAL ADMINISTRATION"
positive_law: true
currency: "119-84"
last_updated: "2026-04-17"
format_version: "1.1.0"
generator: "[email protected]"
source_credit: "(Aug. 10, 1956, ch. 1041, 70A Stat. 458, § 7424; Pub. L. 87–796, § 1(4), Oct. 11, 1962, 76 Stat. 904; Pub. L. 94–258, title II, § 201(5), Apr. 5, 1976, 90 Stat. 309; Pub. L. 96–513, title V, § 513(32)(A), Dec. 12, 1980, 94 Stat. 2933; renumbered § 8724, Pub. L. 115–232, div. A, title VIII, § 807(d)(5), Aug. 13, 2018, 132 Stat. 1836.)"
---


# § 8724. Protection of oil reserves; contracts for conservation

**(a)** To consolidate and protect the oil lands owned by the United States, the Secretary may—

**(1)** contract with owners and lessees of land inside or adjoining naval petroleum reserves for—

**(A)** conservation of oil and gas; and

**(B)** compensation for estimated drainage in lieu of drilling or operating offset wells; and

**(2)** acquire privately owned lands or leases inside Naval Petroleum Reserve Numbered 1 by exchange of—

**(A)** lands of the United States inside Naval Petroleum Reserve Numbered 1;

**(B)** the right to royalty production from any of the naval petroleum reserves; and

**(C)** the right to any money due the United States as a result of the wrongful extraction of petroleum products from lands inside Naval Petroleum Reserve Numbered 1.

**(b)** The Secretary shall report annually to Congress all agreements under this section.

---

**Source Credit**: (Aug. 10, 1956, ch. 1041, 70A Stat. 458, § 7424; Pub. L. 87–796, § 1(4), Oct. 11, 1962, 76 Stat. 904; Pub. L. 94–258, title II, § 201(5), Apr. 5, 1976, 90 Stat. 309; Pub. L. 96–513, title V, § 513(32)(A), Dec. 12, 1980, 94 Stat. 2933; renumbered § 8724, Pub. L. 115–232, div. A, title VIII, § 807(d)(5), Aug. 13, 2018, 132 Stat. 1836.)

| Revised section | Source (U.S. Code) | Source (Statutes at Large) |
| --- | --- | --- |
| 7424 | 34 U.S.C. 524 (4th par., less 1st proviso). | June 4, 1920, ch. 228 (4th par., less 1st proviso, of amended 3d and 4th provisos), 41 Stat. 813; June 30, 1938, ch. 851, § 1, 52 Stat. 1252; June 17, 1944, ch. 262, 58 Stat. 282. |

## Editorial Notes

### Amendments

2018— renumbered  as this section.

1980—Subsec. (a).  substituted “Naval Petroleum Reserve Numbered 1” for “naval petroleum reserve numbered 1” wherever appearing.

1976—Subsec. (a).  struck out “of the Navy” after “Secretary”, “and oil shale” after “petroleum” in par. (1), and “in the ground” after “conservation” in subpar. (A) of par. (1).

1962—Subsec. (a).  inserted provisions in cl. (1) empowering the Secretary to contract with owners and lessees of land inside or adjoining oil shale reserves.

## Statutory Notes and Related Subsidiaries

### Effective Date of 2018 Amendment

Amendment by  effective , with provision for the coordination of amendments and special rule for certain redesignations, see , set out as a note preceding .

### Effective Date of 1980 Amendment

Amendment by  effective , see , set out as a note under .